Three crypto businesses made extensive layoffs this week in preparation for a prolonged recession. Protocol Labs, Chainalysis, and Bittrex all let go of at least 216 personnel between them: 89 from Protocol Labs, 83 from Chainalysis, and 44 employees employed by Bittrex were affected. These drastic measures come as the crypto industry is currently going through its own boom-bust cycle, commonly referred to as “crypto winter.”
Despite The Good Progress In The Market, Layoffs Continue In Companies
On February 3rd, Juan Benet, CEO of Protocol Labs and the founder of Filecoin, made a disheartening announcement in a blog post. He revealed that they were forced to reduce their workforce by 21%, or 89 roles to be exact, to position themselves optimally during this period strategically. By doing so, he ensured that all efforts would be focused on those activities with maximum business potential. Benet urged the company to prepare for a prolonged recession, which has been challenging in the cryptocurrency sector.
On February 1, Bittrex CEO Richie Lai sent an email to employees informing them of a reduction in the workforce to “ensure the long-term viability” of their company. The following day, the email was leaked via Twitter. It detailed that despite aggressive attempts from leadership to reduce expenses and boost efficiency recently, they could not produce satisfactory results due to market conditions. As such, Bittrex had no choice but to realign its strategy with this new economic climate and adjust investments accordingly. On February 2, Washington state employment records revealed that Bittrex had dramatically reduced its staff size by 83 jobs.
On February 1st, Maddie Kennedy – the director of communications for Chainalysis – reported to Forbes that almost 5% percent of their 900 employees had been laid off. This mainly affects those employed in sales roles.
There Were Also Many Layoffs In The Past Month
January witnessed a tumultuous month for cryptocurrency companies with massive layoffs. Coinbase alone axed 950 people, followed by Crypto.com, Luno, and Huobi, who eliminated 500, 330, and 320 staff members. Protocol Labs, Chainalysis, and Bittrex have yet to provide comment despite Cointelegraph’s inquiry following the news of these devastating job losses.
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